The first headquarters for the Metropolitan Police will be transformed into a five-star hotel - with £10,000-a-night rooms for VIPs - after the historic building was acquired by property developers.

Great Scotland Yard, the precursor to the Met's current base at New Scotland Yard, was chosen to house the force in 1829 when it was established by law.

The famous address was used by police until 1890, during which time they investigated notorious criminals such as Jack the Ripper, and featured in Charles Dickens's novels and Arthur Conan Doyle's Sherlock Holmes series.

Exclusive address: Great Scotland Yard in Whitehall, pictured, is set to be converted into a £100million hotel

Historic: The Galliard Group has acquired a 125-year lease on the property

But now the site, which was rebuilt in Edwardian style in 1910, has been acquired on a 125-year lease by the Galliard Group, who plan to turn the Grade II-listed, seven-storey building into one of the capital's most expensive hotels.

The new, £100million Great Scotland Yard will feature a total of 235 rooms, a grand entrance foyer, winter garden lounge, a restaurant, a cocktail bar, a library, a 120-seater main conference room, a ballroom and private dining rooms.

A number of VIP suites are expected to sell at around £10,000 for a single night's stay when the hotel opens its doors in early 2016.

Stephen Conway, chief executive of Galliard Group said: 'Our vision is to create one of London's most outstanding 5-star hotels. It really is a blue-chip building with grand architecture, a fascinating history and large dramatic interiors.

'The street is quiet and tranquil yet on the doorstep of London's most famous landmarks including Trafalgar Square, 10 Downing Street, the Mall and Buckingham Palace.'

In 1829, Home Secretary Sir Robert Peel selected Great Scotland Yard as the headquarters of the newly founded Metropolitan Police force.

The building's main entrance was at 4 Whitehall Place, but a public office was installed to the rear at 3-5 Great Scotland Yard, giving the headquarters their famous name.

Address: The original building was used from 1829-1890 by the police, and was replaced with the current Edwardian construction in 1910

It was here that the notorious Plaistow Marshes and Jack the Ripper crimes were investigated and Scotland Yard was made famous by novelists including Charles Dickens and Arthur Conan Doyle.

In 1890 the police headquarters moved to a new location, which was named New Scotland Yard.

The current Edwardian building was constructed on the site in 1910 and it served as the British Army Recruitment Office and Royal Military Police headquarters.

Lord Kitchener famously told WWI recruits 'Your Country Needs You' and there were cells in the basement for Army deserters.

It was also the scene of the famous IRA car bomb explosion on March 8, 1973, the IRA's first terrorist attack outside of Northern Ireland.

In 1982 a refurbishment introduced a new atrium and the building later became the Ministry of Defence Library until 2004. It has most recently been used a storage base for the MoD but was also featured in the 2007 Keira Knightley film Atonement.

Luxurious: The hotel, which is expected to open in 2016, will have 235 rooms, including some which will cost £10,000 to rent for a single night

Former life: The original Great Scotland Yard can be seen in this drawing. It was replaced by the current Edwardian structure in 1910

London hotels have one of the world's highest occupancy rates of 81 per cent, compared to 79 per cent for Dubai and 78 per cent for Paris. But despite this, there is said to be an undersupply of five-star hotels in Whitehall and Westminster.

Peter Wetherell, managing director of Wetherell Estates and a consultant on a number of major conversions, welcomed the announcement.

He said: 'The government and diplomatic office buildings are more valuable as residential or hotel properties, and their sale or lease is a huge revenue generator for the government.

'The whole government quarter is changing, the Corinthia Hotel was once a government building, Admiralty Arch is being converted into a hotel and residences. Now the Scotland Yard headquarters is turning into a hotel.'